Global Mobile Roaming: Operator Strategies, Opportunities and Challenges in the 3G and LTE Era

2.3.1 Mobile Roaming and the Threat from Bypass Services

There are a number of service providers who are bypassing the standard international voice roaming conventions by enabling VoIP over Wi-Fi. MNOs are unwilling to enable VoIP services on mobile handsets as a service offering. Some operators (for example T-Mobile) have sought to actively stop all customers from using VoIP as part of their mobile data allowance. The majority of service providers are distancing themselves from becoming transporters of VoIP. Visiongain believes this provides an opportunity for some service providers to capitalise by offering VoIP services. In Chart 2.3 below is a forecast of revenues from Mobile VoIP Services from 2010-2016. With a CAGR of 63.07% this service will be worth $29.98 Billion by 2016.

Chart 2.3: Global Mobile VoIP Revenues 2010-2016

Source: visiongain

2.3.1.1 Roaming and the Threat from VoIP

A range of OTT service providers are offering VoIP services (sometimes using VoIP over Wi-Fi) with operators such as Truphone. Other types of service include but are not limited to, Skype on windows mobile, Gizmo VoIP on Nokia and Wi-Fi services on the iPhone and iPod Touch. The user has to disable the 3G mobile service and enable the Wi-Fi service in order to use VoIP. The adoption of mobile VoIP by consumers has been spurred by the emergence of flat-rate mobile data pricing, growth

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Global Mobile Roaming: Operator Strategies, Opportunities and Challenges in the 3G and LTE Era in Smartphone shipments and high-speed mobile broadband. As a result, service providers fear serious impact on their voice revenues.

Visiongain estimate around 68% of operators restrict VoIP services in order to maximise revenues from mobile broadband data plans. See Chart 2.4 for an illustration of this estimate. Visiongain believes operators risk alienating customers by blocking access to VoIP technology on mobile devices.

Chart 2.4: % Operators Restricting VoIP Services

Source: visiongain

2.3.1.1.1 3 UK and Skype

From the 1st May 2009, mobile operator 3 UK introduced an unlimited Skype to Skype calling service from its range of Skype-enabled handsets. The cost of calling another Skype user is free. 3 UK has launched a Pay As You Go Skype SIM card for 1.99 GBP ($3.26) for unlimited Skype to Skype calls. You can get Skype on 3 on nearly all of their available phones. Numerous handsets available on the 3 network come with Skype preloaded, so subscribers can access it easily from their homescreen or from Favourites (called Launcher or Quicklinks on some phones). Skype on 3 is not available for the iPhone. Subscribers can, however, download a Skype app for the iPhone from the Apple app store, but this will incur a data charge when connecting over 3G.